! ! ! Important news! ! !
Fed's Bostic: Expected to start cutting interest rates in Q4 this year, and cut interest rates by 100 basis points next year
Fed's Bostic said that the pricing power of the service industry is declining, but he still believes that housing inflation will "return to normal."
He believes that the Fed can achieve its 2% inflation target while the job market remains "tight" by historical standards. He hopes to be "absolutely certain" that inflation will return to 2% before the initial rate cut, which should be seen as the first step in a series of rate cuts.
Bostic expects that interest rates may be cut in the fourth quarter of this year, and expects a 100 basis point cut next year, that is, four quarterly rate cuts of 25 basis points each in 2025.
